Metinvest to invest more than UAH 30 million in social projects in Mariupol in 2014

Metinvest Group CEO Yuriy Ryzhenkov, Mariupol city mayor Yuriy Khotlubey, Azovstal General Director Enver Tskitishvili and Ilyich Iron & Steel Works of Mariupol General Director Yuriy Zinchenko signed a social partnership agreement with the Mariupol City Council for 2014. Financial support for the city will increase to UAH 30 million this year. In addition, the budget will increase by UAH 8 million so Metinvest's Mariupol metallurgical plants can purchase municipal buses.

Like last year, the Mariupol enterprises will allocate funds to develop the city's infrastructure, to establish recreational areas for residents, and to support the education and health care spheres.

The company made a significant contribution to the health care system in Mariupol in 2013. Capital repairs were carried out at the surgical unit of City Hospital #1 and the therapeutic unit of City Hospital #4. A new clinic was opened to make the medical service more available to 15,000 people in Mariupol. A Fluidos rehabilitation bed, purchased at the end of last year, already saved the lives of two patients in the burn unit of City Hospital #1.

The construction of the Zapadny-1 boosting pump station was a successful infrastructure project that was able to resolve water supply issues for 10,000 people, two schools and two city hospitals. A skate-park and athletics/gymnastics playgrounds were opened in Leporsky Park on the left bank.

To improve public transportation between districts in Mariupol, Metinvest and the City Council will purchase new buses for Mariupol. Renovations to City Hospital #4 are close to completion. Two-thirds of its buildings have been remodelled. In 2014, the old surgical unit will receive new windows and doors, remodelled rooms, and utilities including water supply and heating will be replaced. The next phase of the reconstruction of one of the city's largest recreation areas, Leporsky Park, will continue.

The Mariupol enterprises will invest over UAH 2 million to develop the education system. The funds will be spent to repair schools and purchase modern computers. To resolve water supply and heating problems in Ilyichevsky district, Metinvest will help build a mini-boiler house and pump station.

Yuriy Ryzhenkov, Chief Executive Officer of Metinvest Group:

"Our company has been pursuing partnerships with cities for more than five years. The company's tax payments to the cities where we operate have totalled more than UAH 6 billion in these years. Mariupol accounts for almost one-third or UAH 2 billion of these taxes. Charity contributions have also been impressive. More than UAH 100 million of the UAH 300 million we spent on social projects in the last five years was in Mariupol. This shows how important this city is to our company. It practically forms the system for Metinvest as a company."

Yuriy Khotlubey, mayor of the city of Mariupol:

"2013 was difficult both for Mariupol and Ukraine as a whole. Production dropped 16%. The position that Ilyich Iron & Steel Works of Mariupol and Azovstal in these conditions to avoid cutting jobs helped create stability in our city and provided for the implementation of municipal programs. Our accounts were paralyzed. The Ukrainian treasury used local council funds to pay off debts, pensions and social benefits. UAH 56 million was suspended on the treasury's accounts. Those funds were supposed to be used by the city in the fall and winter to prepare for the school year and much more. We thank Metinvest for its helping hand."

Production capacity of the Enterprise makes it possible to manufacture annually over 5,5 million tons of pig iron, over 6,2 million tons of steel (the target is to achieve 7 million tons of steel per year), over 4,4 million tons of rolled products. Design capacity of rail fastenings manufacture is 285 thousand tons per year and that of steel milling balls manufacture is 170 thousand tons per year.

PJSC “Ilyich Iron and Steel Works of Mariupol” is one of the largest integrated steelmaking enterprises of Ukraine. The enterprise produces flat rolled products and pipes made of carbon, low-alloy and alloy steel for various purposes: hot rolled plates and heavy plates for line pipe manufacturing, shipbuilding, pressure vessels, bridge constructions and other high-duty constructions; hot rolled plates and sheets, incl. pickled rolled products; cold rolled incl. galvanized band, sheet and strip steel, incl. intended for cold forming, manufacture of profiled sheeting, etc.

Metinvest is a vertically integrated mining group of companies, operating the assets in each sector of the production cycle beginning with iron ore and coal mining and coke production up to the manufacture of steel semi-products and finished products, pipes and coils as well as production of other products with high value added. The Group consists of mining and steel works situated in Ukraine, Europe, and the USA and has a chain of sales covering the key world markets. The chief stockholders of Metinvest are SKM Group (71,25%) and Smart-Holding (23,75%) which jointly run the Company.